The Chancellor Jeremy Hunt has, today, launched his Spring Budget, committing £billions across the industry, reallocating money from the non-doms, smokers and frequent flyers, to taxpayers, child benefits and, as is explored here, the Life Sciences industry.
Better budget for the Life Sciences
With journalists and opposition politicians focussing on the taxation elements of Hunt’s budget, and macroeconomic debt and deficit figures, you’d be forgiven for having overlooked the investments announced for the Life Sciences.
In his Statement, Hunt championed the Life Sciences and its potential in tackling cancer, dementia and epilepsy. He backed his words with money too, building on the £520m announced in the Autumn 2023 Statement, £45m additional funding for medical charity research, £50m for the Apprenticeship Growth Sector pilot and £92m (announced two days prior to the Statement) on ‘ joint government and industry investment to expand facilities to manufacture life-saving medicines and diagnostics products’.
At a glance, this investment has been welcomed by trade bodies. ABPI chief executive, Richard Torbett, says “Our members will also welcome the support announced today which will improve the wider UK medical and life sciences ecosystem”, a view echoed by the BIA’s Steve Bates OBE who declares “This is a win-win situation for everybody”.
However, behind flashy announcements of attractive investments, a gloomier picture might still exist. In both their press releases, the ABPI and BIA pointed to uncertainty, red tape and the need for a policy environment to reinvigorate the sector. The APPG for Life Sciences, on the 21st July 2023, highlighted government figures that inward investment fell from £1.9bn to £1bn between 2021-22. The question is: will this budget do enough to turn around the relative turmoil of the UK Life Sciences industry over previous years?
Levelling Up Life Sciences in London and beyond:
Since 2010, the UK government has strategically nurtured priority growth sectors, propelling the nation toward becoming the world’s next Silicon Valley. The Chancellor, with a keen eye on London, proposes the establishment of a dynamic life sciences hub in the locales of Canary Wharf and the Euston Quarter.
“The Spring Budget 2024 plans to realise the vision for an internationally leading life sciences hub at the heart of the Euston Quarter.”
Chancellor Jeremy Hunt
To ensure its execution, the government pledges to establish a Ministerial Taskforce. This taskforce will play a pivotal role in steering the project through its next stages, setting strategic direction, and facilitating decision-making crucial for ambitious housing opportunities and regeneration in the Euston area.
Canary Wharf is set to receive a substantial boost with a £118 million investment to expedite the delivery of a cutting-edge life sciences hub. This infusion is said to not only bring to life a vibrant hub but also create commercial and retail spaces, along with the promise of up to 750 new homes.
Richard Torbett, Chief Executive of the ABPI, lauds this Budget initiative, recognizing the UK’s life sciences industry as a high-potential growth sector. The effect of this will enhance the broader UK medical and life sciences ecosystem, marking a notable leap forward in the life sciences sector.
Life Sciences Industrial Strategy Programme, Curia
Alongside the Chancellor’s announcements, Curia’s Life Sciences Industrial Strategy Programme, supported by the Health, Care and Life Sciences Research Group, continues its inquiries to support the work of a New Government. The Programme has held its third inquiry, with there still being opportunities to contribute your insights before the end of the inquiry phase.
You can join the Programme’s inquiries here, to contribute to the final report, and follow the many events being run by Curia and Chamber UK, by signing up to the Chamber UK Newsletter, here